After Obtaining an Understanding of Internal Control and Arriving at a Preliminary

question 5

Multiple Choice

After obtaining an understanding of internal control and arriving at a preliminary assessed level of control risk,an auditor decided to perform tests of controls.The auditor most likely decided that:

• A)Additional evidence to support a reduction in the assessed level of control risk is not available.
• B)An increase in the assessed level of control risk is justified for certain financial statement assertions.
• C)It would be efficient to perform tests of controls that would result in a reduction in planned substantive procedures.
• D)There were many internal control deficiencies that would allow misstatements to enter the accounting system.

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